Friday, October 19, 2007

Intuitive Surgical

(ISRG 256.44) blew away earnings again. da Vinci's systems are increasing being used in prostrate surgery, and minimally invasive gynecological procedures, and their service revenues will continue to grow over 50%. The stock will gap up, but they'll take out the volatility in the options, as they priced in the move before earnings. The derivative play is Chindex (CHDX 30.58) which sells ISRG's systems in China.

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